Trump's sprawling tariff regime sought to take advantage of the International Emergency Economic Powers Act (IEEPA), which allows the president to regulate imports during national emergencies.
However, the high court ruled 6-3 that IEEPA does not give the president the authority to impose his tariffs.
The tech world has closely followed the legal battle over the import taxes, which threatened to tie up global supply chains that are central to the industry.
"This SCOTUS decision comes at a critical moment for global supply chains as organizations have largely started to change their supply chain operations to navigate the global tariff landscape," Wedbush Securities analyst Dan Ives said in a note Friday.
Several tech trade groups touted the ruling. TechNet President and CEO Linda Moore suggested it "reaffirms the value of clear statutory authority and predictable trade policies that provide certainty for American businesses," as well as the role of Congress.
"Businesses depend on predictable and consistent trade rules to make long-term investments, compete globally, and deliver value to American consumers and workers," she said in a statement. "With this in mind, I encourage the administration to work with Congress to deliver this to the American public."
Jason Oxman, president and CEO of the Information Technology Industry Council, similarly emphasized Friday that the decision "presents an opportunity for the Administration to update its tariff approach to ensure the success of this agenda."
The Consumer Technology Association's executive chair and CEO, Gary Shapiro, called the ruling a "victory for all Americans," arguing it affirms that "the power to tax Americans rests with Congress, not the President."
However, he added, "Our leaders should resist the urge to compound the error by turning to new tariff authorities that add more burden and uncertainty for America's innovators, especially small businesses and startups."
Trump appears likely to turn to other authorities, such as Section 122 or Section 301, to implement his tariff regime now that the Supreme Court has blocked the use of IEEPA.
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